Gildan Activewear Inc. (NYSE:GIL) is one of the best Canadian value stocks to buy. On February 26, Gildan Activewear reported record annual revenue of ~$3.6 billion for 2025, supported by a strong adjusted operating margin of 21.5%. Full-year adjusted diluted EPS rose 17% to $3.51. The company’s Q4 sales from continuing operations jumped 31.3% to $1.078 billion. This was fueled by a 10.3% increase in Activewear sales and a massive 171% surge in Innerwear sales following the acquisition of Hanes brands.
The integration of Hanes brands is a central part of Gildan’s strategy and is reportedly progressing ahead of schedule. The company increased its expected cost synergies to $250 million over the next 3 years through manufacturing footprint optimization and IT standardization. For 2026, Gildan Activewear forecasts revenue between $6 billion and $6.2 billion and adjusted diluted EPS in the range of $4.20 to $4.40. The company also plans to expand its manufacturing complex in Bangladesh to support growth through 2028.
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Despite the positive outlook, the company faces some short-term hurdles, including a proactive inventory destocking plan that will likely impact sales in H1 2026. This move is intended to manage capacity as Gildan Activewear Inc. (NYSE:GIL) closes two Hanes facilities.
Gildan Activewear Inc. (NYSE:GIL) manufactures and sells various apparel products. The company provides various activewear products as well as hosiery products.
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